At 23 times FY26E/21x FY27E EPS, Maruti Suzuki is among the few largecap OEMs available at a discount to historic valuations. Reiterate our Buy rating with a target price of Rs 14,500, valuing at 26x Dec'26E EPS.
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Motilal Oswal Report
For FY26, we see multiple launch tailwinds for Maruti Suzuki India Ltd., such as its first EV for India and exports, hybrid variants, and one SUV. Further, any favorable policy for hybrids by the government may drive a re-rating as Maruti Suzuki would be the key beneficiary of the same. We expect Maruti Suzuki to deliver an 11% earnings CAGR over FY24-27E, driven by new launches and strong export growth.
While we have factored in stable margins over FY24-27E, there could be an upside risk to our estimates if PV demand revives and Maruti Suzuki is able to retain the benefits of an improving mix.
At 23 times FY26E/21x FY27E EPS, valuations appear attractive. Reiterate our Buy rating with a target price of Rs 14,500, valuing at 26x Dec'26E EPS.
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